KUALA LUMPUR (Nov 13): The FBM KLCI is seen starting the week on a lacklustre note today, in line with the weaker close at most global markets last Friday.
Global stock indexes and the U.S. dollar cooled off Friday as signs that U.S. tax reform could be delayed impeded the market's momentum, according to Reuters.
MSCI's global stock index, which tracks shares in 47 countries, declined 0.15 percent, slipping further from a record level. On Thursday, the global index fell 0.4 percent following 10 straight days of gains. The dollar index , too, fell 0.06 percent, it said.
The Dow Jones Industrial Average fell 39.73 points, or 0.17 percent, to 23,422.21, the S&P 500 lost 2.32 points, or 0.09 percent, to 2,582.3 and the Nasdaq Composite added 0.89 point, or 0.01 percent, to 6,750.94, said Reuters.
AllianceDBS Research in its evening edition last Friday said the FBM KLCI had on Nov 10 traded lower to 1,740.94 as market participants decided to play a selling game.
It said under the persistent selling interest, the benchmark index was in the red throughout most of the trading sessions before settling near the day’s low at 1,742.28 (down 4.53 points or 0.26%) ahead of weekend.
“In the broader market, losers outnumbered gainers with 479 stocks ending lower and 371 stocks finishing higher. That gave a market breadth of 0.77 indicating the bears were in better control,” it said.
AllianceDBS Research said that dampened by the negative external market development, the market saw selling activity on Nov 10 soon after the opening bell as market participants chose to unload their stock positions.
“Furthermore, the selling action was initiated in an attempt to reduce overnight risk exposure ahead of the weekend.
“In the absence of positive news flow, many market participants turned more cautious about what would happen next to the market even the market may have appeared to be holding well between 1,740 and 1,752 in the last 11 market days,” it said.
The research house said following the down close on Nov 10, there should be selling attempt again.
“The analysis of overall market action on Nov 10 revealed that buying power was weaker than selling pressure.
“As such, the FBM KLCI would likely trade below the 1,740.94 level on Nov 13,” said AllianceDBS Research.
Based on corporate announcements and news flow yesterday, stocks in focus on Monday (Nov 13) may include Westports Holdings Bhd, BHS Industries Bhd, Petronas Gas Bhd, Petronas Dagangan Bhd, Destini Bhd, XOX Bhd, Samchem Holdings Bhd, Mudajaya Group Bhd, Dialog Group Bhd and KNM Group Bhd.